AIG bonuses halted by US Treasury
AIG executives missed out on $2.4 million mid-year bonus payments last week after intervention by the US Treasury Department.
According to reports, the Treasury, which rescued AIG last year with a $180 billion bailout package, refused permission for the bonuses to be paid.
George Madison, the Treasury’s general counsel nominee, said AIG is negotiating with executives on reducing the $235 million bonus payments due next year.
The bonuses were not paid because a number of compensation issues are still being worked out, Madison said.
AIG declined to comment on Madison’s claim.
In March this year AIG sparked outrage among the American public when it paid $165 million in bonuses to employees of the unit responsible for AIG’s financial demise.
Category: Employment News, Insurance News, Legal News
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This is ridiculous. Just read “Dear AIG, I Quit!” (http://www.nytimes.com/2009/03/25/opinion/25desantis.html) if you want to read an account from an AIG insider. It really puts things in perspective, I believe.